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Paddy PowerThe BusinessPaddy Power are a good example of how the location of a business is a vital consideration. Irish Republic's horseracing levy (tax) of 0.3% of turnover was abolished in July 2001. From October 2001 the UK changed its betting tax rules so that rather than being paid by the customer, now there is a 15% gross profits tax which is paid by the bookmaker. From this date Paddy Power moved its telephone and On-line betting activities to the UK. But there had been considerable discussion of relocation over this period. The company was trying to gain more favourable taxation treatment from the Irish government, whilst threatening to move its operations to the Isle of Man, in order to take advantage of lower betting tax rates there. |
